Inside: Pig Market
Is DCA throwing out BestPigletPrice landing gear?
A lack of demand is perhaps the biggest problem on the piglet market. That is why a solution has been opted for. Which one is that?
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Supply and demand on the piglet market are still out of balance. Relatively large flocks, from sought-after genetics, hang over the market and are difficult to sell. Despite the fact that the supply decreases somewhat seasonally, there are simply too many piglets. Or is it a lack of installation space?
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The falling prices have created a 'deflation effect' and some fattening pig farmers are postponing their production. The idea is that the demand for piglets is fueled by stabilization. In Germany, however, there is no end to the downward trend. The North/West piglet price was reduced by €9 to €2 per piglet on Monday, October 48. The trend report for next week is unchanged to a minus of €3, with a minus of €2 being the most likely scenario. In Denmark the quotation has fallen by €2 to €56,45 per piglet (30 kilos).
Too fragile to remain unchanged
The importers from Spain and Italy offer from week to week below the Dutch quotations. Depending on the quotation, the bid is several euros below that. Many traders therefore opt to slow down the rate of decline. The DCA BestPigletPrice for week 41 decreases by €1 to €37 per piglet. The market is still too fragile to remain unchanged.
It could be that the DCA BestPigletPrice has thrown out the landing gear with this. How quickly the piglet market hits a bottom depends largely on what the German pig price will do on Wednesday, October 11. If unchanged, this will undoubtedly bring peace, also on the piglet market. Since Germany is coming out of a broken slaughter week, a fifth reduction in a row cannot be ruled out. In Germany, producers and traders openly express their wish for unchanged. Slaughterhouses also say they hope the pig market will reach a bottom.
Vion drops again
In any case, Vion's pig price is not the quotation that calms the market. With a minus of €0,02, the pig price amounts to €1,50 per kilo. There appears to be a malfunction at a Vion slaughterhouse, meaning that the ample pig supply has to bypass an additional blockade.